Drop the high hopes for Volcker draft

Author: Danielle Myles | Published: 4 Oct 2011

Do not expect the proposed Volcker rule to shed much light on
which activities will be permitted under the final rule. A
granular proposal is not expected, according to
bankers’ counsel.

An official with the Financial Industry Regulatory
Authority (Finra) has also admitted it will be difficult to
identify prohibited trades under the rule.

The draft rule, widely touted for release this
month, is one of the most controversial and eagerly awaited
under Dodd-Frank.

But counsel speaking at the Securities Industry and
Financial Markets Association’s (Sifma) market
structure conference on September 21 said the most important
detail will not be known for sometime.

"When we get the draft rule, hopefully in October,
you are going to see a lot more general concepts and asking of
questions," said one bankers’ counsel panelist.
"So I don’t think it will be clear cut even then,"
they added.